Daily Archives: December 11, 2014

Are debt funds risk free?

Last year there was an occasion when the NAVs of liquid funds fell. This led many to realise that debt funds are not risk free. What are the risks that these products face?

If you’re buying a debt fund to give your portfolio stability or to help generate income, then your strategy may pay off. Investing in debt mutual funds usually entails less risk—and less reward—than investing in equity mutual funds. But debt funds, like every mutual fund, do involve some degree of investment risk. Read more